NRGI’s Sebastian Tiah Calls for Overhaul of MIIF Framework Amid Growing Demand for Critical Minerals
Ghana must establish stricter oversight mechanisms and ensure greater community ownership in its mineral sector, Sebastian Tiah, Regional Manager for Anglophone Africa at the Natural Resource Governance Institute (NRGI), stated at a workshop on corruption within the minerals value chain on November 12, 2024.
The workshop brought together state actors with responsibility for implementing laws and regulations within the mining sector, state anticorruption actors, civil society, and the media, covering various issues along the transition minerals value chain, the types of corruption along the chain, their causes and consequences of corruption, and the best practices for diagnosing and preventing corruption.
Speaking on the gaps within Ghana’s Mineral Income Investment Fund (MIIF) framework, Mr Tiah advocated for a PIAC-style regulatory body to oversee stakeholder decisions and enforce accountability for revenues generated from mining activities.
“The Mineral Income Investment Act mandates how mining royalties are allocated, but the current framework lacks robust accountability mechanisms,” Mr Tiah remarked, underscoring the need for a systemic review. The MIIF currently focuses predominantly on gold royalties, a limitation he believes should be addressed given the soaring demand for other essential minerals.
“The Act should capture transitional minerals as the future demand will lead to a rush for these resources, bringing in more companies and, consequently, more revenue,” he added.
As a model for Ghana, Mr Tiah pointed to Sierra Leone’s Community Development Agreements (CDAs), which formalize the local ownership of mining resources beyond the ad hoc nature of corporate social responsibility (CSR) initiatives.
“CSR isn’t enough; communities are asking for more substantive participation,” he noted, arguing that Ghana should consider legislation that formalizes community stakes in local mining ventures, granting direct economic benefits, employment quotas, and infrastructure support through dividends from mining revenues.
Community beneficiation schemes, he said, should involve tangible stakes quantified either in labour or materials contributed to be held in trust for community development. “Instead of simply doling out funds, we should create CDAs that guarantee a lasting stake for communities in their local resources,” Mr Tiah stressed.
Looking to the future, Mr Tiah also urged Ghana to position itself for domestic mining ownership. Although international expertise is necessary for technical industries like lithium mining, Mr Tiah argued that Ghana should foster partnerships that build local capacity, aiming for long-term ownership by Ghanaian firms.
“Our plan shouldn’t be to retain these companies forever,” he said. “The goal should be Ghanaian-owned mines, operated sustainably with a focus on local expertise.”
Mr Tiah’s remarks place a renewed spotlight on Ghana’s mineral policy framework amid the growing global race for critical minerals, adding pressure on the government to revamp regulations and elevate community ownership as a central tenet of its economic strategy.
The NRGI Corruption Diagnostic Tool
In recognition of the potential corruption risks with transition minerals, NRGI relaunched its corruption diagnostic tool, developed in 2021.
The tool, an adaptable, step-by-step process designed to help anti-corruption actors identify and understand major corruption issues in the extractives sector, incorporates new insights and research to make it as effective as possible.
The process emphasizes collaboration across stakeholders, both to strengthen understanding of the most pressing issues and to build buy-in for reforms.
